FBLA --> Intro to Financial Math

Straight-Time Pay

The total amount of money earned for a pay period at the regular hourly rate.

Straight-Time Pay Formula

Hourly Rate x Hours Worked

Overtime pay

pay received for hours worked in addition to regular hours

Time and a Half

an overtime pay rate of 1 1/2 times the regular hourly rate

double time

an overtime pay rate of 2 times the regular hourly rate

Total pay (gross pay) formula

Straight-time pay + Overtime pay

Overtime Pay Formula

Overtime rate x Overtime hours

Weekly Time Card

A daily record of the time you report to work and the time you depart

Total Hours worked formula

Sum of daily hours in a week

Piecework pay

Pay according to the number of units produced.

Piecework total pay formula

rate per item x number of items produced

Salary

A fixed amount of money paid to an employee for each pay period.

Salary per Pay period

Annual salary / number of pay periods per year

Commission

An amount paid to an employee based on a percentage of the employee's sales. Might be paid a commission only, or have guaranteed minimum salary. If so, if your commision > minimum salary, you are paid commission, and vice versa.

Commission Formula

Total sales x commission rate

Gross pay (commission)

Salary or commission, whichever is greater

graduated commission

Pay based on a different rate of commission for each of several levels of sales. when you reach quota of sales, your commission increases

Total graduated commissions formula

sum of commissions for each level of sales

FIT

Federal Income Tax. amount your employer witholds from your paycheck to give to the government. There are tables specifying.

Witholding allowance

reduces the amount of federal income tax to be withheld, depending on the amount of people you support

Simple Average

assumes the same number of each object

Weighted average

Average of data that takes other factors such as the number of items into account.

List price/catalog price

The retail price listed in a catalog or on an Internet site

Trade discount

a reduction in the list price granted to customers, or retailers by wholesalers

net price

The price after the trade discount has been deducted from the list price.

Trade discount rate

The amount of the discount of an item expressed as a percent of the list price.

Trade Discount formula

List price x Trade-Discount Rate

net price formula

list price - trade discount

Complement

way to find net price, expressed as a percentage

complement formula

100 - trade discount rate

Net price formula using complement method

List price x complement

Trade discount rate formula

trade discount (in $$)/list price

Chain discount

Occurs when the list price of a product is subject to a series of trade discounts.

how to calculate chain discount

you must add up each discount individually. written as {percent one} less {percent two} or {percent one}/{percent two}. First fine the first discount {percent one}, then the second with the remaining price

net price rate

multiplication of all the chain discounts as complements. For example, $30 list price at 5/10 is $30 x 0.95 x 0.90. Net price rate is 0.95 x 0.90. You pay 85% of the original price.

SED (single equivalent discount)

Complement of the net price. Use this to find the discount. SED x list price = discount

Ordinary dating discount

an incentive to pay early. The supplier will offer a cash discount if the bill is paid in a certain number of days. Ordinary dating example: Invoice says 2/10, net 30 (or 2/10 n30) means that there is 2% cash discount if paid within 10 days, and net price has to be paid in 30 days.

Cash Price formula

Net price - cash discount